FBCG Butterfly Strategy
FBCG (Fidelity Blue Chip Growth ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund allocates capital to major U.S. enterprises that demonstrate strong potential for increasing profits and possess resilient operational frameworks. A key aspect of its selection process involves identifying such companies that the market might be currently undervaluing.
FBCG (Fidelity Blue Chip Growth ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.43B, a beta of 1.36 versus the broader market, a 52-week range of 47.6-64.38, average daily share volume of 605K, a public-listing history dating back to 2020. These structural characteristics shape how FBCG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.36 indicates FBCG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FBCG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on FBCG?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
FBCG snapshot
As of September 29, 2026, spot at $63.24, ATM IV 423.50%, expected move 121.41%. The butterfly on FBCG below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this butterfly structure on FBCG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FBCG is inferred from ATM IV at 423.50% alone, with a market-implied 1-standard-deviation move of approximately 121.41% (roughly $76.78 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FBCG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FBCG should anchor to the underlying notional of $63.24 per share and to the trader's directional view on FBCG etf.
FBCG butterfly setup
The FBCG butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FBCG at $63.24 on that close, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FBCG chain at a 17-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 FBCG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $60.00 | $3.63 |
| Sell 2 | Call | $63.00 | $1.20 |
| Buy 1 | Call | $66.00 | $0.13 |
FBCG butterfly risk and reward
- Net Premium / Debit
- -$135.50
- Max Profit (per contract)
- $157.22
- Max Loss (per contract)
- -$135.50
- Breakeven(s)
- $61.36, $64.65
- Risk / Reward Ratio
- 1.160
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
FBCG butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on FBCG. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$135.50 |
| $13.99 | -77.9% | -$135.50 |
| $27.97 | -55.8% | -$135.50 |
| $41.95 | -33.7% | -$135.50 |
| $55.94 | -11.5% | -$135.50 |
| $69.92 | +10.6% | -$135.50 |
| $83.90 | +32.7% | -$135.50 |
| $97.88 | +54.8% | -$135.50 |
| $111.86 | +76.9% | -$135.50 |
| $125.84 | +99.0% | -$135.50 |
When traders use butterfly on FBCG
Butterflies on FBCG are pinning bets - traders use them when they expect FBCG to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
FBCG thesis for this butterfly
The market-implied 1-standard-deviation range for FBCG extends from approximately $-13.54 on the downside to $140.02 on the upside. A FBCG long call butterfly is a pinning play: it pays maximum at the middle strike if FBCG settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. As a Financial Services name, FBCG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FBCG-specific events.
FBCG butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. FBCG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FBCG alongside the broader basket even when FBCG-specific fundamentals are unchanged. Always rebuild the position from current FBCG chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on FBCG?
- A butterfly on FBCG is the butterfly strategy applied to FBCG (etf). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With FBCG etf at $63.24 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed FBCG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FBCG butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the FBCG butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 423.50%), the computed maximum profit is $157.22 per contract and the computed maximum loss is -$135.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FBCG butterfly?
- The breakeven for the FBCG butterfly priced on this page is roughly $61.36 and $64.65 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FBCG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 121.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on FBCG?
- Butterflies on FBCG are pinning bets - traders use them when they expect FBCG to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current FBCG implied volatility affect this butterfly?
- Current FBCG ATM IV is 423.50%; IV rank context is unavailable in the current snapshot.